The economy may not exactly be booming. But it’s better than it has been in a while. And, as Phoenix recruiters, PrideStaff knows that after a long stretch of “doing more with less,” you likely have some employees who are hungry for a pay raise.
So the question is: Are you prepared for “the talk”?
If the thought of negotiating salaries and pay raises makes your palms sweat and your ears ring, then the answer’s “probably not.” The good news is that there are steps you can take to turn this stressful situation into a positive one for you, your employee, and the company at large.
Evaluate the Market.
Before heading into salary negotiations with an employee, have answers to questions like:
- What does the employment market look like in your industry?
- What are professionals with similar skills making at other, similarly sized companies?
If an employee walks in asking for the moon, you can show them that the numbers don’t back up their request.
Know Your Limits.
Once you’ve taken a look at the landscape around you, look internally to the company’s goals and limits. For instance, is the company performing well overall, or just barely getting by? Has there been a budget set for pay raises? Are there certain skills or positive atttributes (such as sales numbers, perfect attendance, or employee loyalty) that the company wishes to reward?
Analyze the Employee.
Before sitting down to talk numbers, analyze what the employee brings to the table in terms of value to better determine a reasonable pay raise. For instance, do they consistently outperform – or underperform – on expectations? And how important is their skill set to the company’s success?
Hear the Employee Out.
Typically, when an employees come to you to talk pay raises, they’ve done their homework and have prepared reasons why they believe they deserve a raise. So listen actively to what they have to say.
Be Honest & Direct.
After you’ve heard your employee out, let them know what you can provide them – – and what you can’t. One mistake some managers make at this point is over-promising and under-delivering. So be honest and firm about what you can deliver. If you can, share the rationale and numbers behind your decision.
Offer It in Writing.
Make sure there’s no ambiguity about what’s being offered by putting the terms in writing.
Need Help With Salary Negotiations?
Whether you’re looking to hire, or negotiating with existing employees, PrideStaff can provide you with the market data you need to prepare for “the talk.” And, as Phoenix recruiters, PrideStaff can also work with you to source, screen, and recruit top-performing employees who can hit the ground running at your company.
Contact PrideStaff today to learn more.